Which of the following statements is false? The larger the expenditure multiplier, the steeper the IS curve The LM curve is positively sloped because higher interest rates induce higher income levels...

The larger the expenditure multiplier, the steeper the IS curve

The LM curve is positively sloped because higher interest rates induce higher income levels in order for the money market to remain in equilibrium

The adjustment mechanism in the Keynesian income-expenditure model is an unplanned rundown or accumulation of inventories

The aggregate expenditure function relates planned spending to income

A position that is to the left and below the IS curve indicates that there is excess demand for goods and services